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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted:	October 12, 2017 11:55 AM
From:	Representative Rob W. Kauffman
To:	All House members
Subject:	Theft of Health Insurance Payments

I will soon be introducing legislation to amend that portion of the Crimes Code entitled Theft By Failure to Make Required Disposition of Funds Received. This section of the Crimes Code, 18 PaCS3927, makes it unlawful to fail to turn over money or property belonging to another. However, the provision does not specifically address the failure to turn over a check for the payment of health care services of another. My legislation would add language so that it would be unlawful for a person to retain the payment, which should go to a health care provider, for his own use. I have been made aware of various circumstances where health insurance payments have been sent out to the policyholder for payment of a claim for another individual covered under the policy. The policyholders cashed the check, leaving the bill unpaid and the other individual left with the bill. In one circumstance it was a $40,000 bill for an air ambulance. Shockingly enough, this is not illegal and was not able to be prosecuted. This legislation attempts to remedy this situation. I invite you to join me in co-sponsorship of this legislation.

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